payment allocation

Camelia19

Who has made the mistake? In Feb. I did a 0%  24m, 3% fee BT to a credit card. In March I did another BT to same card but at a low interest rate - 3.9%pa for 36 months, no fee. A while later I transferred the balance on the original card that was at 3.9% to another card offering a 0% deal after checking the first banks Ts & Cs regarding payment allocation which states "We use your payments to pay off balances charged at the highest interest rate first and so on down to balances with the lowest interest rates. This means the more expensive balances are always paid off first."  Low and behold my statement has just arrived and the payment has gone against my first BT at 0%. Have I missed something or have I been conned?   

[Deleted User]

No, you won't have been conned.

Had the more expensive balance statemented?  If not, that'll likely be your mistake in making the transfer too early.  Most, though not all, cards will use statemented transactions first, in a high to low order.

Camelia19

The payment to clear the more expensive balance is showing as the same date as the statement date!

zagfles

Camelia19 said:

The payment to clear the more expensive balance is showing as the same date as the statement date!

Did it appear on that statement? Obviously if it appeared on that statement, it was applied before the statement was produced. Therefore it would have always paid anything on a previous statement before anything which was (at the time) unstatemented.

Camelia19

The statement date is 9th April and the payment that I intended to pay off the balance at 3.9% is showing on that statement also dated 9th April. That particular BT is showing on the statement as 25th March.

Mr87

Unfortunately I think you know your answer. You need to wait until you receive the statement before applying for BT

zagfles

Camelia19 said:

The statement date is 9th April and the payment that I intended to pay off the balance at 3.9% is showing on that statement also dated 9th April. That particular BT is showing on the statement as 25th March.

Then it would have paid off anything on your 9th March statement before paying off anything that, at the time, was unstatemented. All credit cards work like that, they have to when you think about it. It'll almost certainly be in the T&Cs somewhere.

Camelia19

Thank you all - we live and learn! Wont be making that mistake again! So, just so that I am clear, if I had not made the payment until the 10th April my plan would have worked?

[Deleted User]

Correct.